July 31, 2012 (Frisco, TX) – According to new research from TDG, Netflix is experiencing a significant decline in satisfaction among its streaming users. “The impact of its ill-conceived price and packaging change of late 2011 continue to resonate today,” notes Michael Greeson, TDG Founding Partner and Director of Research.

In mid-2011, two-thirds of Netflix streamers were highly satisfied with the service. Today, less than half are highly satisfied, a decline of 29% in just 12 months. “While declines of this magnitude should be of concern to investors and subscribers alike,” notes Greeson, “it is important to note that the shift appears to have been from ‘highly satisfied’ to ‘neutral’, not to ‘highly dissatisfied’.” Despite this trend – and despite Wall Street’s continued punishment – Netflix remains dominant in over-the-top video services and has become the default choice for fee-based OTT services on virtually every streaming video platform, be it a game console, Blu-ray player, Internet set-top box, smart TV, tablet, or smartphone.

“Let’s be clear: connecting one’s TV to the Internet is now a mainstream phenomenon,” said Greeson. “Unlike the early days, Netflix must compete with a variety of streaming services, including big brands such as Amazon and Wal-Mart (Vudu), studio-funded efforts like Hulu Plus, and expanding operator video-on-demand services. Netflix’s early mover advantage is quickly evaporating, and unfortunately at the same time, service satisfaction is declining.”

Video Behavior in the Age of Quantum Media highlights exhaustive primary consumer research fielded in Q2 2012. The final report examines traditional and broadband video device ownership and use across a variety of key variables. The report is available to TDG Premier Members and may be purchased separately by contacting our Research Services Team now at 469-287-8050.

About The Diffusion Group
TDG provides actionable intelligence on the quantum shifts impacting consumer technology and media behaviors. Since 2004, our market research and advisory services have helped technology vendors, media companies, and service providers understand how consumers access, navigate, distribute, and consume broadband media—whenever and wherever they may be.